MUMBAI, Mar 27: BigBloc Construction on Wednesday said its subsidiary Bigbloc Building Elements has received an eligibility certificate for a Rs 27.14 crore subsidy for the first phase of its Wada project in Maharashtra.
The leading construction material producer has received the subsidy under an industry promotion scheme from the Maharashtra Government over the completion of the first phase of the AAC blocks project at Wada in Palghar, Maharashtra, a statement said.
The subsidy payout would be in the form of SGST exemption on sale in Maharashtra, interest subsidy, electricity duty and tariff subsidy to be paid over 10 years.
The second phase of the project at Wada launched in December 2025 to take the total capacity from 2.5 lakh cubic meters to 5 lakh cubic meters for Rs 30 crore would be eligible for additional subsidy payout, the company added.
The second phase is expected to be completed in the first quarter of 2024-25 and would help generate a Rs 200 crore revenue from the facility.
BigBloc has manufacturing plants in Vapi and Ahmedabad in Gujarat and Wada in Maharashtra. It is among very few companies in the AAC industry to generate carbon credits. The company expects to generate around 2.75 lakh carbon credits every year after the completion of its expansion projects.
The company expects to achieve 20-25 per cent sales growth in FY24 with a healthy EBITDA margin of 20-25 per cent.
Bigbloc Construction Chairman Narayan Saboo said that the company in joint venture with Thailand’s SCG Group is setting up a 3 lakh cubic meter per annum plant for ALC Panels and AAC Blocks in Ahmedabad and targeting production in the first quarter of FY25.
The company aims for a leadership position in India’s AAC Block Space with 13.75 lakhs cubic meters per annum capacity post-completion of ongoing expansion projects. (PTI)
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